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AB2653, introduced by Assembly Member Lee, proposes adding Chapter 6.5 to Part 2 of Division 2 of the Public Contract Code, requiring state agencies to report on certain AI systems.
If you supply AI products to California, certify against sweatshop labor by July 1, 2027, or face penalties.
State
California
Bill Number
AB2653
Status
Introduced
Risk Level
Medium
Category
Amendment
Effective Date
Jul 1, 2027
Last Action
May 14, 2026
Last Verified
May 29, 2026
Data Updated
May 29, 2026
Version
v3
What do these statuses mean?▼
Introduced— Filed in the legislature; not yet heard in committee
In Committee— Assigned to and being reviewed by a legislative committee
Passed— Approved by one or both chambers; awaiting further action
Signed / Enacted— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed— Vetoed, failed to pass, or session expired without action
Unknown— Status data not yet available or awaiting classification
Affected Industries
General
What This Means
California's AB2653, introduced by Assembly Member Lee, aims to add Chapter 6.5 to Part 2 of Division 2 of the Public Contract Code, mandating reports on specific AI systems in public contracts.
Key Provisions
AB2653 proposes adding Chapter 6.5 to Part 2 of Division 2 of the Public Contract Code.
The bill requires state agencies to report on the use of certain modern foundation models and associated AI systems in public contracts.
Details about report frequency, penalties for non-compliance, and guidelines cannot be confirmed without the full bill text.
The bill's content regarding 'ethical considerations' remains unverified.
Latest Legislative Action
In committee: Held under submission.
Bill Sponsors
Name
Role
District
Alex LeeD
Sponsor
HD-024
Roll Call Votes
A ·
Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar ·
Apr 21, 2026
15 Yea 0 NayPassed ✓
A ·
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection] ·
Apr 8, 2026
5 Yea 0 Nay 2 OtherPassed ✓
Compliance Checklist
Certify compliance with the Sweatfree AI Code of Conduct Who: Contractors providing AI products requiring data enrichment Deadline: By July 1, 2027 Penalty: Potential contract voiding and financial penalties
Ensure subcontractors comply with the Sweatfree AI Code of Conduct Who: Contractors Deadline: By July 1, 2027 Penalty: Penalties for non-compliance may apply
Full Legal Analysis
Assembly Bill 2653, introduced by Assembly Member Lee, proposes adding Chapter 6.5 to Part 2 of Division 2 of the Public Contract Code. The bill requires state agencies to report on the use of certain modern foundation models and associated AI systems in public contracts. Details about report frequency, penalties for non-compliance, and guidelines cannot be confirmed without the full bill text. The bill's content regarding 'ethical considerations' also remains unverified.
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